CFE Exam Law with complete solutions
j j j j j
U.S. jForeign jCorrupt jPractices jAct's j(FCPA) j- jANSWER✓✓-prohibits jthe
jpayment jor joffer jof janything jof jvalue jto ja jforeign jofficial jfor jthe jpurpose jof
jobtaining jor jretaining jbusiness. jPromises jto jpay jare jconsidered jitems jof
jvalue. jFurthermore, jforeign jcompanies jare jwithin jthe jreach jif jthey jhave
jregistered jsecurities jor jare jotherwise jrequired jto jfile junder jthe jU.S. jSecurities
jExchange jAct jof j1934 j(the jExchange jAct).
The jFinancial jAction jTask jForce j(FATF) j- jANSWER✓✓-an jintergovernmental
jbody jthat jwas jestablished jat jthe jG-7 jSummit jin j1989. jIts jpurpose jis jto jdevelop
jand jpromote jstandards jand jpolicies jto jcombat jmoney jlaundering jand jterrorist
jfinancing jat jboth jthe jnational jand jinternational jlevels. jThe jRecommendations,
jrevised jin j2012, jcreated jthe jmost jcomprehensive jstandard jwith jwhich jto
jmeasure ja jcountry's janti-money jlaundering j(AML), jcounterterrorism, j& jnuclear
jproliferation jlaws jand jpolicies. jserve jas ja jbasic jframework jof jlaws jthat jits
jmembers jshould jhave. jWhile jthe jFATF jRecommendations jare jnot jreq jby jthe
jFATF's jmembers, jand jthe jFATF jacknowledges jthat jfollowing jeach jrule jmight
jnot jbe jpossible, jmembers joften jadopt jthem.
Civil jLaw jSystems j- jANSWER✓✓-apply jlaws jfrom jan jaccepted jset jof jcodified
jprinciples jor jcompiled jstatutes. jIndividual jcases jare jthen jdecided jin
jaccordance jw/ jthese jbasic jtenets. jUnder jthis jsystem, jjudges/judicial
jadministrators jare jbound jonly jby jthe jcivil jcode, jnot jby jthe jprevious jdecisions
jof jother jcourts. jIn jdeciding jlegal jissues, ja jcivil jlaw jjudge japplies jthe jvarious
jcodified jprinciples jto jeach jcase.
False jImprisonment j- jANSWER✓✓-the junlawful jrestraint jby jone jperson jof jthe
jphysical jliberty jof janother jwithout jconsent jor jlegal jjustification. j
There jare jno jprecise jrules jas jto jwhen ja jfalse jimprisonment joccurs, jbut jfactors
jsuch jas jthe jlength, jnature, jand jmanner jof jthe jinterview jmight jdetermine
jwhether jliability jarises.
Jury jTrials j- jANSWER✓✓-While jjury jtrials jare jtypically jused jin jcriminal
jproceedings jin jcommon jlaw jjurisdictions, jthis jis jnot jalways jthe jcase. jFor
jsome jcases, jusually jminor jcriminal joffenses, ja jjury jtrial jmight jnot jbe javailable.
jIn jserious jcases, jhowever, jjury jtrials jare jtypically javailable. jAdditionally, jmany
,jcommon jlaw jjurisdictions jallow jthe jdefendant jto jwaive jthe jright jto jtrial jby jjury.
jWhen jno jjury jis jpresent, jthe jjudge jserves jas jthe jfact jfinder.
Chain jof jCustody j- jANSWER✓✓-the jprimary jreason jfor jmaintaining jthis jon jan
jitem jof jevidence jis jto jestablish jthat jthe jevidence jhas jnot jbeen
jaltered/changed. jIf jevidence jis jsubject jto jchange jover jtime jor jsusceptible jto
jalteration, jthe joffering jparty jmight jneed jto jestablish jthat jthe jevidence jhasn't
jbeen jaltered jor jchanged jfrom jthe jtime jit jwas jcollected jthrough jits jproduction
jin jcourt. jCan jbe jan jimportant jfactor jin jestablishing jauthenticity. jthis jis jboth ja
jprocess j& ja jdocument jthat jmemorializes j(1) jwho jhas jhad jpossession jof jan
jobject j& j(2) jwhat jthey jhave jdone jw/ jit.
Exhibits jin jCommon jLaw jSystems j- jANSWER✓✓-the jtangible jobjects jpresented
jas jevidence—are jinadmissible junless jthey jare jrelevant jand jestablished jas
jauthentic. jThus, jto jbe jadmissible jat jtrial, jevidence, jother jthan jtestimonial
jevidence, jmust jbe jproperly jauthenticated; jthat jis, jthe jparty joffering jthe jitem
jmust jproduce jsome jevidence jto jshow jit jis, jin jfact, jwhat jthe jparty jsays jit jis
jand jto jshow jit jis jin jthe jsame jcondition jas jwhen jit jwas jseized. jIf jan jexhibit
jcan't jbe jauthenticated, jit jwon't jbe jadmitted jeven jif jit's jplainly jrelevant.
Both jthe jUK jBribery jAct jand jthe jU.S. jForeign jCorrupt jPractices jAct j(FCPA)
jmake jit ja jcrime jto: j- jANSWER✓✓-offer jforeign jpublic jofficials jbribes jor jto
jaccept jbribes jfrom jthem jin jconnection jwith jinternational jbusiness
jtransactions, jand jtheir jprohibitions jon jbribing jforeign jgovernment jofficials jare
jbroadly jcomparable. jThus, jlike jthe jFCPA, jthe jUK jBribery jAct jseeks jto jpunish
jcorruption jon ja jglobal jlevel, jbut jthe jUK jBribery jAct jhas jan jeven jbroader
japplication jthan jthe jFCPA.
Lay jWitness j- jANSWER✓✓-is janyone jwho jprovides jnonexpert jtestimony. jNote,
jhowever, jthat jan jexpert jwitness jmight jalso jprovide jlay jtestimony. jTypically, ja
jfraud jexaminer jwho jworked jon ja jcase jwill jbe jcapable jof jproviding jlay
jtestimony jbased jon jobservations jmade jduring jthe jinvestigation. jWhen ja jtrial
jinvolves jissues jthat jare jcomplex jor junfamiliar jto jmost jpeople, jas jis jcommon
jin jincidents jof jfraud, jexpert jtestimony jis jappropriate jto jhelp jthe jfact jfinder
junderstand jthese jissues.
Lay jTestimony j- jANSWER✓✓-(sometimes jcalled jfactual jtestimony), jwhere
jwitnesses jtestify jabout jwhat jthey jhave jexperienced jfirsthand j& jfactual
jobservations.
United jNations' j(UN) jInternational jCovenant jon jCivil jand jPolitical jRights
j(ICCPR) j- jANSWER✓✓-commits jsigning jcountries jto jrecognizing jvarious jrights
jof jcitizens. jPart jIII jof jthe jICCPR jincludes jthe jrights jof jthose jaccused jof
jcrimes. jAs jone jof jthese jrights, jthe jICCPR jstates jthat jall jpeople jaccused jof
jcrimes jare jentitled jto ja jfair jhearing jbefore ja jcourt jor jother jtribunal jand jthat
, jthe jresults jof jthe jtrial jshould jbe jmade jpublic jto jprotect jthe jcriminal jjustice
jsystem's jtransparency. jThis jright jincludes:
- jAdequate jtime jto jprepare ja jdefense
- jThe jability jto jbe jrepresented jby jlegal jcounsel jof jthe jdefendant's jchoosing
jand jto jfreely jcommunicate jwith jcounsel
- jThe jright jto jhave jaccusations jand jthe jprocedures jexplained jthrough ja
jtranslator jfor jfree, jif jnecessary
- jThe jright jto jbe jtried jfor jcharges jwithout jundue jdelay
- jThe jright jto jexamine jor jhave jexamined jthe jwitnesses jagainst jthe jaccused
- jFreedom jfrom jtestifying jagainst joneself jor jcompelled jconfessions
Intrusion jinto jan jindividual's jprivate jmatters j(often jreferred jto jas jintrusion
jupon jseclusion) j- jANSWER✓✓-a jcommon jlaw jinvasion jof jprivacy jcivil jwrong
jthat joccurs jwhen jan jindividual jintentionally jencroaches jinto jan jarea jwhere
janother jindividual jhas ja jreasonable jexpectation jof jprivacy jand jthe
jencroachment jwould jbe jhighly joffensive jor jobjectionable jto ja jreasonable
jperson
Recommendation jon jCombating jBribery jin jInternational jBusiness
j(Recommendation) j- jANSWER✓✓-published jby jthe jOrganisation jfor jEconomic
jCo-operation jand jDevelopment j(OECD) jin j1994, jurges jmember jstates jto jdeter
jand jpenalize jthe jbribery jof jforeign jpublic jofficials jby jtaking j"concrete jand
jmeaningful jsteps" jto jimprove jthe jfollowing jareas jwithin jtheir jrespective
jinfrastructures:
- jCriminal, jcivil, jcommercial, jand jadministrative jlaws
- jTax jsystems jand jregulations
- jBanking jand jaccounting jrequirements jand jpractices
- jLaws jand jregulations jrelated jto jpublic jsubsidies, jlicenses, jand jcontract
jprocurement
Oral jExamination jor jDeposition j- jANSWER✓✓-sworn jtestimony jgiven jby ja
jparty jor jwitness jupon jquestioning jby jcounsel jfor jone jof jthe jparties jbefore jtrial
jand joutside jof jcourt, jusually jin ja jlawyer's joffice. jOpposing jcounsel jand ja
jstenographer, jwho jadministers jthe joath jand jtranscribes jthe jtestimony, jare jalso
jpresent. jmay jbe jused jto jobtain jevidence jabout jthe jparty's jown jcase jor jthe
jopponent's, jor jit jmay jbe jused jto jpreserve jtestimony jfor jtrial. jSome jcommon
jlaw jjurisdictions jdo jnot jallow jthis jpretrial, jbut jwritten jexaminations jare jstill
javailable jpretrial.
Initial jPleading jRequirements j- jANSWER✓✓-A jcivil jaction jbegins jwhen jthe
jplaintiff jfiles ja jpleading jwith jthe jappropriate jcourt, jusually jin jthe jjurisdiction jin
jwhich jthe jdefendant jresides jor jwhere jthe jclaim jarose. jThe jpleading jsets jout
jthe jcomplaint jagainst jthe jdefendant jand jthe jremedy jthat jthe jplaintiff jis
jseeking. jThe jrequired jcontents jof jthe jplaintiff's jpleadings jwill jvary jsomewhat
jbetween jjurisdictions, jbut jmost jjurisdictions jrequire jfact jpleadings, jmeaning
jthe jplaintiff jmust jidentify:
j j j j j
U.S. jForeign jCorrupt jPractices jAct's j(FCPA) j- jANSWER✓✓-prohibits jthe
jpayment jor joffer jof janything jof jvalue jto ja jforeign jofficial jfor jthe jpurpose jof
jobtaining jor jretaining jbusiness. jPromises jto jpay jare jconsidered jitems jof
jvalue. jFurthermore, jforeign jcompanies jare jwithin jthe jreach jif jthey jhave
jregistered jsecurities jor jare jotherwise jrequired jto jfile junder jthe jU.S. jSecurities
jExchange jAct jof j1934 j(the jExchange jAct).
The jFinancial jAction jTask jForce j(FATF) j- jANSWER✓✓-an jintergovernmental
jbody jthat jwas jestablished jat jthe jG-7 jSummit jin j1989. jIts jpurpose jis jto jdevelop
jand jpromote jstandards jand jpolicies jto jcombat jmoney jlaundering jand jterrorist
jfinancing jat jboth jthe jnational jand jinternational jlevels. jThe jRecommendations,
jrevised jin j2012, jcreated jthe jmost jcomprehensive jstandard jwith jwhich jto
jmeasure ja jcountry's janti-money jlaundering j(AML), jcounterterrorism, j& jnuclear
jproliferation jlaws jand jpolicies. jserve jas ja jbasic jframework jof jlaws jthat jits
jmembers jshould jhave. jWhile jthe jFATF jRecommendations jare jnot jreq jby jthe
jFATF's jmembers, jand jthe jFATF jacknowledges jthat jfollowing jeach jrule jmight
jnot jbe jpossible, jmembers joften jadopt jthem.
Civil jLaw jSystems j- jANSWER✓✓-apply jlaws jfrom jan jaccepted jset jof jcodified
jprinciples jor jcompiled jstatutes. jIndividual jcases jare jthen jdecided jin
jaccordance jw/ jthese jbasic jtenets. jUnder jthis jsystem, jjudges/judicial
jadministrators jare jbound jonly jby jthe jcivil jcode, jnot jby jthe jprevious jdecisions
jof jother jcourts. jIn jdeciding jlegal jissues, ja jcivil jlaw jjudge japplies jthe jvarious
jcodified jprinciples jto jeach jcase.
False jImprisonment j- jANSWER✓✓-the junlawful jrestraint jby jone jperson jof jthe
jphysical jliberty jof janother jwithout jconsent jor jlegal jjustification. j
There jare jno jprecise jrules jas jto jwhen ja jfalse jimprisonment joccurs, jbut jfactors
jsuch jas jthe jlength, jnature, jand jmanner jof jthe jinterview jmight jdetermine
jwhether jliability jarises.
Jury jTrials j- jANSWER✓✓-While jjury jtrials jare jtypically jused jin jcriminal
jproceedings jin jcommon jlaw jjurisdictions, jthis jis jnot jalways jthe jcase. jFor
jsome jcases, jusually jminor jcriminal joffenses, ja jjury jtrial jmight jnot jbe javailable.
jIn jserious jcases, jhowever, jjury jtrials jare jtypically javailable. jAdditionally, jmany
,jcommon jlaw jjurisdictions jallow jthe jdefendant jto jwaive jthe jright jto jtrial jby jjury.
jWhen jno jjury jis jpresent, jthe jjudge jserves jas jthe jfact jfinder.
Chain jof jCustody j- jANSWER✓✓-the jprimary jreason jfor jmaintaining jthis jon jan
jitem jof jevidence jis jto jestablish jthat jthe jevidence jhas jnot jbeen
jaltered/changed. jIf jevidence jis jsubject jto jchange jover jtime jor jsusceptible jto
jalteration, jthe joffering jparty jmight jneed jto jestablish jthat jthe jevidence jhasn't
jbeen jaltered jor jchanged jfrom jthe jtime jit jwas jcollected jthrough jits jproduction
jin jcourt. jCan jbe jan jimportant jfactor jin jestablishing jauthenticity. jthis jis jboth ja
jprocess j& ja jdocument jthat jmemorializes j(1) jwho jhas jhad jpossession jof jan
jobject j& j(2) jwhat jthey jhave jdone jw/ jit.
Exhibits jin jCommon jLaw jSystems j- jANSWER✓✓-the jtangible jobjects jpresented
jas jevidence—are jinadmissible junless jthey jare jrelevant jand jestablished jas
jauthentic. jThus, jto jbe jadmissible jat jtrial, jevidence, jother jthan jtestimonial
jevidence, jmust jbe jproperly jauthenticated; jthat jis, jthe jparty joffering jthe jitem
jmust jproduce jsome jevidence jto jshow jit jis, jin jfact, jwhat jthe jparty jsays jit jis
jand jto jshow jit jis jin jthe jsame jcondition jas jwhen jit jwas jseized. jIf jan jexhibit
jcan't jbe jauthenticated, jit jwon't jbe jadmitted jeven jif jit's jplainly jrelevant.
Both jthe jUK jBribery jAct jand jthe jU.S. jForeign jCorrupt jPractices jAct j(FCPA)
jmake jit ja jcrime jto: j- jANSWER✓✓-offer jforeign jpublic jofficials jbribes jor jto
jaccept jbribes jfrom jthem jin jconnection jwith jinternational jbusiness
jtransactions, jand jtheir jprohibitions jon jbribing jforeign jgovernment jofficials jare
jbroadly jcomparable. jThus, jlike jthe jFCPA, jthe jUK jBribery jAct jseeks jto jpunish
jcorruption jon ja jglobal jlevel, jbut jthe jUK jBribery jAct jhas jan jeven jbroader
japplication jthan jthe jFCPA.
Lay jWitness j- jANSWER✓✓-is janyone jwho jprovides jnonexpert jtestimony. jNote,
jhowever, jthat jan jexpert jwitness jmight jalso jprovide jlay jtestimony. jTypically, ja
jfraud jexaminer jwho jworked jon ja jcase jwill jbe jcapable jof jproviding jlay
jtestimony jbased jon jobservations jmade jduring jthe jinvestigation. jWhen ja jtrial
jinvolves jissues jthat jare jcomplex jor junfamiliar jto jmost jpeople, jas jis jcommon
jin jincidents jof jfraud, jexpert jtestimony jis jappropriate jto jhelp jthe jfact jfinder
junderstand jthese jissues.
Lay jTestimony j- jANSWER✓✓-(sometimes jcalled jfactual jtestimony), jwhere
jwitnesses jtestify jabout jwhat jthey jhave jexperienced jfirsthand j& jfactual
jobservations.
United jNations' j(UN) jInternational jCovenant jon jCivil jand jPolitical jRights
j(ICCPR) j- jANSWER✓✓-commits jsigning jcountries jto jrecognizing jvarious jrights
jof jcitizens. jPart jIII jof jthe jICCPR jincludes jthe jrights jof jthose jaccused jof
jcrimes. jAs jone jof jthese jrights, jthe jICCPR jstates jthat jall jpeople jaccused jof
jcrimes jare jentitled jto ja jfair jhearing jbefore ja jcourt jor jother jtribunal jand jthat
, jthe jresults jof jthe jtrial jshould jbe jmade jpublic jto jprotect jthe jcriminal jjustice
jsystem's jtransparency. jThis jright jincludes:
- jAdequate jtime jto jprepare ja jdefense
- jThe jability jto jbe jrepresented jby jlegal jcounsel jof jthe jdefendant's jchoosing
jand jto jfreely jcommunicate jwith jcounsel
- jThe jright jto jhave jaccusations jand jthe jprocedures jexplained jthrough ja
jtranslator jfor jfree, jif jnecessary
- jThe jright jto jbe jtried jfor jcharges jwithout jundue jdelay
- jThe jright jto jexamine jor jhave jexamined jthe jwitnesses jagainst jthe jaccused
- jFreedom jfrom jtestifying jagainst joneself jor jcompelled jconfessions
Intrusion jinto jan jindividual's jprivate jmatters j(often jreferred jto jas jintrusion
jupon jseclusion) j- jANSWER✓✓-a jcommon jlaw jinvasion jof jprivacy jcivil jwrong
jthat joccurs jwhen jan jindividual jintentionally jencroaches jinto jan jarea jwhere
janother jindividual jhas ja jreasonable jexpectation jof jprivacy jand jthe
jencroachment jwould jbe jhighly joffensive jor jobjectionable jto ja jreasonable
jperson
Recommendation jon jCombating jBribery jin jInternational jBusiness
j(Recommendation) j- jANSWER✓✓-published jby jthe jOrganisation jfor jEconomic
jCo-operation jand jDevelopment j(OECD) jin j1994, jurges jmember jstates jto jdeter
jand jpenalize jthe jbribery jof jforeign jpublic jofficials jby jtaking j"concrete jand
jmeaningful jsteps" jto jimprove jthe jfollowing jareas jwithin jtheir jrespective
jinfrastructures:
- jCriminal, jcivil, jcommercial, jand jadministrative jlaws
- jTax jsystems jand jregulations
- jBanking jand jaccounting jrequirements jand jpractices
- jLaws jand jregulations jrelated jto jpublic jsubsidies, jlicenses, jand jcontract
jprocurement
Oral jExamination jor jDeposition j- jANSWER✓✓-sworn jtestimony jgiven jby ja
jparty jor jwitness jupon jquestioning jby jcounsel jfor jone jof jthe jparties jbefore jtrial
jand joutside jof jcourt, jusually jin ja jlawyer's joffice. jOpposing jcounsel jand ja
jstenographer, jwho jadministers jthe joath jand jtranscribes jthe jtestimony, jare jalso
jpresent. jmay jbe jused jto jobtain jevidence jabout jthe jparty's jown jcase jor jthe
jopponent's, jor jit jmay jbe jused jto jpreserve jtestimony jfor jtrial. jSome jcommon
jlaw jjurisdictions jdo jnot jallow jthis jpretrial, jbut jwritten jexaminations jare jstill
javailable jpretrial.
Initial jPleading jRequirements j- jANSWER✓✓-A jcivil jaction jbegins jwhen jthe
jplaintiff jfiles ja jpleading jwith jthe jappropriate jcourt, jusually jin jthe jjurisdiction jin
jwhich jthe jdefendant jresides jor jwhere jthe jclaim jarose. jThe jpleading jsets jout
jthe jcomplaint jagainst jthe jdefendant jand jthe jremedy jthat jthe jplaintiff jis
jseeking. jThe jrequired jcontents jof jthe jplaintiff's jpleadings jwill jvary jsomewhat
jbetween jjurisdictions, jbut jmost jjurisdictions jrequire jfact jpleadings, jmeaning
jthe jplaintiff jmust jidentify:
